Fed Chair Kevin Warsh Raises Inflation Concerns, Stresses 2% Target

[Financial News] Kevin Warsh, chair of the Federal Reserve System (Fed), said the United States needs to keep a close watch on recent inflation after the central bank held its benchmark rate steady for a second straight meeting since he took office in May.
Warsh delivered his first keynote speech since taking office at the Fed's annual economic symposium, the Jackson Hole Economic Policy Symposium, held in Jackson Hole, Wyoming, on the 28th (local time). At the meeting, he described U.S. inflation as "concerning." The U.S. Personal Consumption Expenditure Price Index (PCE) for July, released on the 26th, rose 3.7% from a year earlier, topping market expectations of 3.6%. Core PCE inflation also remained at 3.3%, unchanged from the previous month. The index is widely used by the Fed to gauge inflation.
Warsh referred to the Fed's inflation target and said, "The 2% PCE inflation target has not changed, and price stability is the Fed's mandate." He also said that if inflation "does not return to 2%, there is still work to be done." Warsh added, "Current financial conditions do not appear to be restrictive."
[email protected] Park Jong-won Reporter